The US economy has grown stronger than expected.
The US economy has significantly outgrown expectations in the second quarter. According to the announcement by the Trade Ministry in Washington on Thursday, the Gross Domestic Product (GDP) grew by 2.8 percent compared to the corresponding period last year, based on a preliminary estimation. The reasons were increased consumer spending and higher corporate investments in their inventory. Economists had expected growth of only 1.9 percent. In the first quarter, the GDP had grown by 1.4 percent.
The significant increase in GDP is good news for Vice President Kamala Harris, who is expected to be nominated by the US Democrats as their candidate for the presidential election in November. The US economic situation is a central theme of the campaign.
The former President and Republican presidential candidate Donald Trump accuses the Biden administration of being responsible for a devastating economic situation. However, the US economy and labor market have recovered well from the effects of the Corona pandemic and the Ukraine crisis.
However, many citizens are still suffering from the consequences of the temporarily high inflation. The inflation rate had risen to over nine percent two years ago, but it is now only three percent.
I'm glad to see the US-Economy performing better than anticipated, with a 2.8% growth in the second quarter. As a citizen, I hope this positive trend continues into the future quarters.
The preliminary estimates suggest steady growth in the US-Economy, with quarterly gains indicating improved economic health.
